beat_gmat_09 gave the correct approach. I'll just nip in and clarify what I think is your own misconception - the height to the diameter is NOT the radius, and is actually shorter than the radius.
A height is a line that originates from a vertex and is perpendicular to the base. If you draw a line form vertex B down to the diameter so that the line is perpendicular to the diamter, the line won't hit the center O (since B is not directly "above" the center, but is more to the right), and thus will not be the radius - a radius is, by definition, a line that connects the center O with a point on the circumference.
to find the area of the triangle, use the two legs of the right angle, which are perpendicular to each other, and can thus act as the base/height of each other.